As we limp into 2025 and put the all-important presidential election behind us, the real estate market is at a crossroads. Despite expectations of significant market distress by now, the wave of distressed assets has not yet materialized in the way many predicted. Instead, the market has continued its slow transaction environment, with selective opportunities that demand creativity and patience from lenders and investors alike.

The economy is exhibiting some positive characteristics: Inflation has been reduced to near the Federal Reserve’s 2 percent target, job and wage growth have slowed, and the balance between unemployment and job openings is where the Fed finds it acceptable. The Federal Open Market Committee reduced interest rates by 25 basis points in November 2024 but has signaled the need for more clarity on the economy’s direction before determining where rates will move in 2025. The 10-year Treasury, still a bellwether for all things real estate debt related, di